AMENDED AND RESTATED
AGREEMENT AND PLAN OF MERGER
This Amended and Restated Agreement and Plan of Merger (this
"Agreement") is dated as of January 29, 1998 and amended and restated as of
March 4, 1998, by and among U.S. Aggregates, Inc. a Delaware corporation
("Purchaser"), Western Acquisition, Inc., a Delaware corporation and a
wholly-owned indirect subsidiary of Purchaser ("Sub"), and Monroc, Inc., a
Delaware corporation (the "Company").
RECITALS
A. The Boards of Directors of Purchaser, Sub and the Company each
have determined that the merger of Sub with and into the Company, upon the terms
and subject to the conditions set forth herein, is fair to, and in the best
interests of, their respective corporations and stockholders.
B. Concurrently with the execution of the amendment and restatement
of this Agreement, a significant stockholder of the Company has reconfirmed the
Voting Agreement attached hereto as Exhibit A (the "Voting Agreements") which
provides that such stockholders will vote their shares of common stock of the
Company in favor of this Agreement.
C. Purchaser, Sub and the Company desire to make certain
representations, warranties, covenants and agreements in connection with, and to
establish various conditions precedent to, the merger provided for herein.
ARTICLE I
THE MERGER
1.1 MERGER. At the Effective Time, upon the terms and subject to
the conditions hereof, and in accordance with the provisions of the Delaware
General Corporation Law (the "DGCL") and the Certificate of Incorporation and
Bylaws of the Company, Sub shall be merged with and into the Company (the
"Merger"). Following the Merger, the Company shall continue as the surviving
corporation (the "Surviving Corporation") under the name Monroc, Inc. and shall
continue its existence under the laws of the State of Delaware, and the separate
corporate existence of Sub shall cease.
1.2 CONSUMMATION OF THE MERGER. As soon as practicable after the
satisfaction or waiver of the conditions set forth in Article 6, the parties
hereto will cause a duly executed and acknowledged certificate of merger, or
certificate of ownership and merger if permitted by the DGCL of the State of
(the "Merger Certificate"), to be filed with the Secretary of State of Delaware,
and the parties hereto shall take all such other and further actions as may be
required by law to make the Merger effective. The Merger shall become effective
on the date on which the Merger Certificate has been duly filed with the
Secretary of State of the State of Delaware (such time is hereinafter referred
to as the "Effective Time"). The closing of the Merger will take place at 10:00
a.m. on a date to be specified by the Purchaser or Sub, but shall be no later
than the third business day after
satisfaction or waiver of the conditions to closing set forth in Article 6
(the "Closing Date"), at the offices of LeBoeuf, Lamb, Xxxxxx & XxxXxx,
L.L.P., 1000 Xxxxxx Building, 000 Xxxxx Xxxx Xxxxxx, Xxxx Xxxx Xxxx, Xxxx
00000, unless another date or place is agreed to in writing by the parties
hereto.
1.3 EFFECTS OF THE MERGER. The Merger shall have the effects set
forth in the DGCL. Without limiting the generality of the foregoing, and subject
thereto, at the Effective Time, all the properties, rights, privileges, powers
and franchises of the Company and Sub shall vest in the Surviving Corporation.
and all debts, liabilities and duties of the Company and Sub shall become the
debts, liabilities and duties of the Surviving Corporation. As of the Effective
Time, the Company shall be a wholly owned subsidiary of Purchaser.
1.4 CERTIFICATE OF INCORPORATION AND BYLAWS. Subject to Section
5.11 (indemnification), the Certificate of Incorporation and the Bylaws of Sub
in effect at the Effective Time shall be the Certificate of Incorporation and
Bylaws of the Surviving Corporation until amended in accordance with applicable
law-, provided that Article I of the Certificate of Incorporation of Sub shall
be Amended as of the Effective Time to read "The name of the corporation is
Monroc, Inc."
1.5 DIRECTORS AND OFFICERS. The directors of Sub at the Effective
Time shall be the directors of the Surviving Corporation and the officers of the
Company at the Effective Time shall be the officers of the Surviving
Corporation, in each case until their respective successors are duly elected (or
appointed in the case of officers) and qualified.
ARTICLE 2
CONVERSION OF SECURITIES
2.1 CONVERSION OF SECURITIES. At the Effective Time, by virtue of
the Merger and without any action on the part of Purchaser, Sub, the Company or
the holders of any of the following securities:
2.1.1 Each share of common stock, par value $.01 per share, of
the Company issued and outstanding immediately prior to the Effective Time (the
"Shares"), other than Shares to be canceled pursuant to Section 2.1.2 and
Dissenting Shares (as hereinafter defined), shall by virtue of the Merger and
without any action on the part of the holder thereof be canceled and
extinguished and be converted into the right to receive $10.771 without interest
thereon (the "Merger Consideration").
2.1.2 Each Share which is issued and outstanding immediately
prior to the Effective Time and held by Purchaser or Sub or any direct or
indirect subsidiary of Purchaser or Sub, or which is held in the treasury of the
Company or any of its subsidiaries, shall be canceled and retired and no payment
shall be made with respect thereto.
2.1.3 Each share of common stock, par value $.01 per share, of
Sub issued and outstanding immediately prior to the Effective Time shall be
converted into and become one validly
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issued, fully paid and nonassessable share of common stock, par value $.01
per share (or such other value as may be determined by Sub), of the Surviving
Corporation.
2.2 EMPLOYEE STOCK OPTIONS; OUTSTANDING WARRANTS. Immediately prior
to the Effective Time, each stock option (an "Option") granted under the Monroc,
Inc. 1996 Stock Option Plan and the Monroc, Inc. 1994 Stock Option Plan
(collectively, the "Stock Option Plans") and each outstanding warrant of the
Company (a "Warrant"), whether or not such Option or Warrant is then
exercisable, shall be canceled and each holder of a canceled Option or Warrant
shall be entitled to receive from the Company, in consideration for cancellation
and settlement of such Option or Warrant, a cash payment equal to the product of
(i) the aggregate number of Shares subject to the Option or Warrant and (ii) the
excess, if any, of the Merger Consideration over the exercise price per Share of
such Option or Warrant as set forth in Schedule 3.2 (the "Option
Consideration"). Prior to the Closing, the Company will make any amendments to
the Stock Option Plans, the Warrants and any agreements related thereto, and
will obtain any consents or releases, necessary to effect the transactions
contemplated by this Section 2.2. Any amounts payable pursuant to this Section
2.2 shall be subject to any required withholding of taxes and shall be paid
without interest.
2.3 DISSENTING SHARES; PAYMENT FOR SHARES. Notwithstanding in this
Agreement to the contrary, Shares outstanding immediately prior to the Effective
Time and held by holders who did not vote in favor of the Merger and who comply
with all of the relevant provisions of Section 262 of the DGCL (the "Dissenting
Shares") shall not be converted into the right to receive the Merger
Consideration, and the holders of such Dissenting Shares shall be entitled to
receive payment of the appraised value of such Shares in accordance with the
provisions of Section 262 unless and until such holders shall have failed to
perfect or shall have effectively withdrawn or lost their rights to appraisal.
If, after the Effective Time, any such holder fails to perfect or shall have
effectively withdrawn or otherwise lost such right, each of such holder's Shares
shall thereupon be deemed to have been converted into the right to receive, as
of the Effective Time, the Merger Consideration without any interest thereon.
The Company shall give Sub prompt notice of any demands received by the Company
for appraisal of Shares, and, prior to the Effective Time, Sub shall have the
right to participate in all negotiations and proceedings with respect to such
demands. Prior to the Effective Time, the Company shall not, except with the
prior written consent of Sub, make any payment with respect to, or settle or
offer to settle, any such demands.
2.4 PAYMENT FOR SHARES. Prior to the Effective Time, Purchaser
shall designate a United States bank or trust company reasonably satisfactory to
the Company to act as Payment Agent in the Merger (the "Payment Agent"). At or
prior to the Effective Time, Purchaser or Sub shall deposit, or cause to be
deposited, in trust with the Payment Agent immediately available funds in an
amount sufficient to make the payments contemplated by Section 2.1.1 on a timely
basis (the "Exchange Fund"). The Payment Agent shall, pursuant to irrevocable
instructions and subject to Section 2.4.3, make payments out of the Exchange
Fund to holders of record who hold Shares immediately prior to the Effective
Time and the Exchange Fund shall not be used for any other purpose. The
Exchange Fund may, as directed by the Surviving Corporation (so long as such
directions do not impair the rights of holders of Shares to receive the Merger
Consideration promptly upon the surrender of their
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shares in accordance with this agreement), be invested by the Payment Agent
in direct obligations of the United States of America, obligations for which
-the full faith and credit of the United States of America is pledged to
provide for the payment of principal and interest, commercial paper rated of
the highest quality by Xxxxx'x Investors Services, Inc. or Standard & Poor's
Corporation, or certificates of deposit issued by a commercial bank having at
least $1,000,000,000 in assets. Deposit of funds pursuant hereto shall not
relieve Purchaser or the Surviving Corporation of their obligations to make
payments in respect of Shares and Purchaser hereby guarantees the Surviving
Corporation's obligations in respect thereof.
2.4.1 Promptly after the Effective Time, Purchaser and the
Surviving Corporation shall cause the Payment Agent to mail and/or make
available to each record holder, as of the Effective Time, of a certificate or
certificates (the "Certificates") which immediately prior to the Effective Time
represented Shares (other than those cancelled pursuant to Section 2.1.2), a
notice and letter of transmittal (which shall specify that delivery shall be
effected, and risk of loss and title to the Certificate shall pass, only upon
proper delivery of the Certificates to the Payment Agent) and instructions for
use in effecting the surrender of the Certificates in exchange for the Merger
Consideration. As promptly as practicable after surrender to the Payment Agent
of a Certificate, together with such letter of transmittal duly executed and
completed in accordance with the instructions thereon, the holder of such
Certificate shall be paid in exchange therefor cash in an amount equal to the
product of the number of Shares represented by such Certificate multiplied by
the Merger Consideration, and such Certificate shall be canceled. No interest
shall be paid or accrued in respect of the Merger Consideration. If payment is
to be made to a person other than the person in whose name the certificate
surrendered is registered, it shall be a condition of payment that the
Certificate so surrendered shall be properly endorsed or otherwise in proper
form for transfer and that the person requesting such payment shall pay any
transfer or other taxes required by reason of the payment to a person other than
the registered holder of the surrendered Certificate or establish to the
satisfaction of the Surviving Corporation that such tax has been paid or is not
applicable. Until surrendered in accordance with the provisions of this Section
2.4, each Certificate (other than Certificates cancelled pursuant to Section
2.1.2 and Dissenting Shares) shall represent for all purposes solely the right
to receive the Merger Consideration, without any interest thereon.
2.4.2 After the Effective Time, there shall be no transfers of
Shares on the stock transfer books of the Surviving Corporation. If, after the
Effective Time, Certificates are presented to the Payment Agent or the Surviving
Corporation, they shall be canceled and exchanged for cash as provided in this
Section 2.4, subject to applicable law in the case of Dissenting Shares.
2.4.3 Any portion of the Exchange Fund which remains unclaimed
by the stockholders of the Company on the date six months after the Effective
Time shall be repaid to the Surviving Corporation, upon demand, and any
stockholder of the Company who has not theretofore complied with Section 2.4
shall thereafter look only to the Surviving Corporation for payment of such
stockholder's claim for the Merger Consideration, without any interest thereon.
ARTICLE 3
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REPRESENTATIONS AND WARRANTIES OF THE COMPANY
The Company represents and warrants to Purchaser and Sub as
follows:
3.1 ORGANIZATION AND QUALIFICATION. The Company and each subsidiary
of the Company is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation, has all requisite
corporate power and authority to own, lease and operate its properties and to
carry on its business as now ben conducted and is duly qualified to do business
as a foreign corporation and in good standing in each jurisdiction in which the
character of its properties or the nature of its business makes such
qualification necessary, except where the failure to be so organized, existing,
qualified or in good standing or have such power and authority would not have a
Material Adverse Effect (as defined in Section 8.12). The Company has delivered
or made available to Purchaser complete and correct copies of its and its
subsidiaries' respective certificates of incorporation and bylaws. All
subsidiaries of the Company and their respective jurisdictions of incorporation
or organization are identified on Schedule 3. 1.
3.2 CAPITALIZATION. The authorized capital stock of the Company
consists of 20,000,000 Shares and 1,000,000 shares of Preferred Stock, par value
$.01 per share ("Preferred Shares"). No Preferred Shares are outstanding. All
of the outstanding Shares have been duly authorized and validly issued and are
fully paid and nonassessable and free of preemptive rights. As of the date
hereof, (i) 4,514,200 Shares were issued and outstanding, (ii) 52 Shares were
held in the Company's treasury, (iii) 415,600 Shares were reserved for issuance
pursuant to outstanding Options and (iv) 1,501,250 Shares were reserved for
issuance upon the exercise of outstanding Warrants. Except for the rights as
set forth in this Section 3.2, there are not as of the date hereof any
outstanding or authorized subscriptions, options, warrants, calls, rights,
commitments or any other agreements of any character obligating the Company or
any of its subsidiaries to issue any additional Shares or any other shares of
capital stock of the Company or any other securities convertible into or
evidencing the right to subscribe for any Shares. The exercise prices of the
outstanding Options and Warrants are set forth on Schedule 3.2. Except as
provided in Section 2.2 or as set forth on Schedule 3.2, there are no
outstanding obligations of the Company or any of its subsidiaries to repurchase,
redeem or otherwise acquire any of their respective equity securities. Each of
the outstanding shares of capital stock of each of the Company's subsidiaries is
duly authorized, validly issued, fully paid and nonassessable. and is owned,
directly or indirectly, by the Company. The Shares which are the subject of the
Voting Agreement represent approximately 36.6% of the total Shares outstanding
as of the date hereof.
3.3 AUTHORITY RELATIVE TO THIS AGREEMENT. The Company has all
requisite corporate power and authority to execute and deliver this Agreement
and subject to the terms and conditions hereof, to consummate the transactions
contemplated hereby (other than, with respect to the Merger, the approval and
adoption of this Agreement and the transactions contemplated hereby by the
stockholders of the Company in accordance with the applicable provisions of the
DGCL). The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly and validly authorized by the
Board of Directors of the Company and no other
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corporate proceedings on the part of the Company are necessary to authorize
this Agreement or to consummate the transactions so contemplated (other than,
with respect to the Merger, the approval and adoption of this Agreement and
the transactions contemplated hereby by the stockholders of the Company in
accordance with the applicable provisions of the DGCL). This Agreement has
been duly and validly executed and delivered by the Company and, assuming
this Agreement constitutes a valid and binding obligation of each of
Purchaser and Sub, this Agreement constitutes a valid and binding agreement
of the Company, enforceable against the Company in accordance with its terms,
except that such enforcement may be subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to creditors' rights and the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding
therefor may be brought.
3.4 ABSENCE OF CERTAIN CHANGES. Except as disclosed in the Company
Filings (as defined in Section 3.5) or as set forth on Schedule 3.4, since
November 30, 1997 (a) the Company and its subsidiaries have riot suffered any
Material Adverse Effect, (b) the Company has not issued any shares of its
capital stock or granted any rights to purchase its capital stock or securities
convertible into or exchangeable for its capital stock or (c) the Company has
not declared, set aside or made any payments of a dividend or other distribution
in respect of any of its capital stock and has not, directly or indirectly,
redeemed, purchased or otherwise acquired any of its capital stock.
3.5 REPORTS; FINANCIAL STATEMENTS. Since December 31, 1994, the
Company has filed all required forms, reports and documents with the Securities
and Exchange Commission (the "SEC") required to be filed by it pursuant to the
federal securities laws and the SEC rules and regulations thereunder (the
"Company Filings"), all of which have been delivered or made available to
Purchaser and all of which have complied in all material respects with all
applicable requirements of the Securities Act of 1933, as amended (the
"Securities Act"), and the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and the rules and regulations promulgated thereunder. None of
the Company Filings, including without limitation any financial statements or
schedules included therein, at the time filed, contained any untrue statement of
a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The audited and
unaudited consolidated financial statements of the Company included in such
reports have been prepared in accordance with generally accepted accounting
principles applied on a consistent basis (except as stated in such financial
statements) and fairly present the financial position of the Company and its
consolidated subsidiaries as of the dates thereof and the remits of their
operations and changes in financial position for the periods then ended,
subject, in the case of the unaudited financial statements, to normal year-end
audit adjustments. Except as reflected, reserved against or otherwise disclosed
in the financial statements of the Company included in the Company Filings, as
otherwise disclosed in the Company Filings or as disclosed on Schedule 3.5,
neither the Company nor any of its subsidiaries has any material liabilities or
obligations (whether accrued, absolute, contingent or otherwise) that would be
required to be reflected on, or reserved against in, the financial statements of
the Company or in the notes thereto, prepared in accordance with generally
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accepted accounting principles consistently applied, except liabilities arising
in the ordinary course of business since November 30, 1997.
3.6 CONSENTS AND APPROVALS, NO VIOLATION. Neither the execution and
delivery of this Agreement by the Company nor the consummation by the Company of
the transactions contemplated hereby will (except as disclosed by the Company on
Schedule 3.6):
3.6.1 subject to the obtaining of any requisite approval of
the Company's stockholders, conflict with any provision of the Certificate of
Incorporation or Bylaws of the Company or the charter documents of the Company's
subsidiaries;
3.6.2 require any consent, approval, authorization or permit
of, or filing with or notification to, any court, administrative agency or
commission or other governmental authority domestic or foreign (a "Governmental
Entity"), except (i) in connection with the Xxxx-Xxxxx-Xxxxxx Antitrust
Improvements Act of 1976, as amended (the "HSR Act"), (ii) pursuant to the
Exchange Act and the rules and regulations thereunder, (iii) pursuant to state
laws relating to takeovers and state securities laws, -(iv) the filing of the
Merger Certificate pursuant to the DGCL, or (v) where the failures to obtain
such consents, approvals, authorizations or permits, or to make such filings or
notifications, would not in the aggregate have a Material Adverse Effect;
3.6.3 violate any order, writ, injunction, decree, statute,
rule or regulation applicable to the Company or its subsidiaries, except for
violations which, in the aggregate, would not have a Material Adverse Effect; or
3.6.4 result in a default (or give rise to any right of
termination, cancellation or acceleration) under any of the terms, conditions or
provisions of any note, lease, mortgage, license, agreement, permit or other
instrument or obligations to which the Company or any of its subsidiaries is a
party or by which the Company or any of its subsidiaries or any of their
respective assets may be bound, except for such defaults (or rights of
termination, cancellation or acceleration) as to which requisite waivers or
consents have been obtained or which, in the aggregate, would not have a
Material Adverse Effect.
3.7 LITIGATION. Except as set forth on Schedule 3.7 or as disclosed
in the Company Filings filed prior to the date of this Agreement, there are no
actions, suits or proceedings pending or, to the knowledge of the Executive
Officers of the Company, threatened against the Company or any of its
subsidiaries which would have a Material Adverse Effect.
3.8 COMPLIANCE WITH LAWS. To the best knowledge of the Executive
Officers of the Company, except as disclosed in the Company Filings or as set
forth on Schedule 3.8, the Company and its subsidiaries have conducted their
businesses in accordance with applicable federal, state and local laws, rules
and regulations, except where the failure to so conduct their businesses would
not in the aggregate have a Material Adverse Effect. The Company and its
subsidiaries hold all permits, licenses, variances, exemptions, orders,
franchises and approvals of all Governmental Entities
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necessary for the conduct of their respective businesses as presently
conducted, except where the failure to so hold would riot have a Material
Adverse Effect (the "Company Permits"). The Company and its subsidiaries are
in compliance with the terms of the Company Permits, except where the failure
to so comply would not have a Material Adverse Effect.
3.9 EMPLOYEE MATTERS. Except as set forth on Schedule 3.9, none of
the Company or any of its subsidiaries is a party to, or bound by, any
collective bargaining agreement, contract or other agreement or understanding
with a labor union or labor organization. There is no unfair labor practice or
labor arbitration proceeding pending or, to the knowledge of the Executive
Officers of the Company, threatened against the Company or any of its
subsidiaries, except for any such proceedings which would not in the aggregate
have a Material Adverse Effect.
3.10 MATERIAL CONTRACTS. The Company has delivered or made available
to Purchaser true and complete copies of all written, and written descriptions
of all oral, contracts, agreements, commitments, leases (including with respect
to personal property) and other arrangements to which it or any of its
subsidiaries is a party or by which it or any of its subsidiaries are bound
which require payments to be made in excess of $250,000 per year, other than
agreements listed in any of the other schedules attached hereto (the "Material
Contracts"). Each of the Material Contracts is listed on Schedule 3.10. Each of
the Material Contracts is valid and in full force and effect except to the
extent it has previously expired in accordance with its terms. Neither the
Company nor any of its subsidiaries is in violation of or in default under (nor
does any circumstance exist which, with notice of the lapse of time or both,
would result in such a violation of or default under) any Material Contract,
other than such violations or defaults which would not have a Material Adverse
Effect. To the knowledge of the Executive Officers of the Company, none of the
other parties to the Material Contracts are in violation of or in default under
(nor does any circumstance exist which, with notice of the lapse of time or
both, would result in such a violation of or default under) any Material
Contract, other than such violations or defaults which would not have a Material
Adverse Effect.
3.11 TAXES.
3.11.1 Each of the Company and its Subsidiaries (as defined
below for purposes of this Section 3.11) has timely filed all material federal,
state, local and foreign Tax Returns (as defined below) required to be filed by
it for tax years prior to the date of this Agreement or has timely requested
extensions and any such request has been granted and has not expired. Except as
set forth on Schedule 3.11, no agreement or arrangement extending the period for
assessment or collection of Taxes of the Company or any of its Subsidiaries is
in effect as of the date hereof. Each of such Tax Returns is complete and
accurate in all material respects. AD Taxes (as defined below) owed by the
Company or any of its Subsidiaries on any such Tax Return have been paid or
accrued, except for Taxes being contested in good faith and for which adequate
reserves have been taken. The Company and each of its Subsidiaries have
properly accrued for all Taxes for such periods subsequent to the periods
covered by such Tax Returns. For purposes of this Section 3.11, the term
"Subsidiary" of an entity shall mean any corporation, 80 % of the voting power
and 80 % of the total value of all of the outstanding capital stock of which are
owned directly by such entity.
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3.11.2 Except as set forth on Schedule 3.11, there are no
pending or, to the knowledge of the Executive Officers of the Company,
threatened audits or other proceedings by any court, governmental or regulatory
authority or similar person in respect of Taxes or Tax Returns relating to the
Company or any of its Subsidiaries which, if determined adversely to the Company
or any of its Subsidiaries, could reasonably be expected to have a Material
Adverse Effect.
3.11.3 No election under Section 338 of the Internal Revenue
Code of 1986, as amended (the "Code"), has been made or filed by or with respect
to the Company or any of its Subsidiaries. None of the Company or any of its
Subsidiaries has agreed to make any adjustment pursuant to Section 481 (a) of
the Code by reason of any change in any accounting method, and there is no
application pending with any Taxing Authority (as defined below) requesting
permission for any changes in any accounting method of the Company or any of its
Subsidiaries. None of the assets of the Company or any of its Subsidiaries is
or will be required to be treated as being owned by any person (other than the
Company or its Subsidiaries) pursuant to the provisions of Section 168(f)(8) of
the Internal Revenue Code of 1954, as amended and in effect immediately before
the enactment of the Tax Reform Act of 1986.
3.11.4 Except as set forth on Schedule 3.11, none of the
Company or any of its Subsidiaries is party to, is bound by, or has any
obligation under, any Tax sharing or allocation agreement or similar contract.
3.11.5 Except as set forth on Schedule 3.11, none of the
Company or any of its Subsidiaries is a party to any contract, agreement, plan
or arrangement that could reasonably be expected to result in the payment of any
amount that would not be deductible by the Company or any of its Subsidiaries by
reason of Section 280G of the Code.
3.11.6 Schedule 3.11 accurately set forth (i) the amount of
all deferred intercompany gains for purposes of Treasury Regulation section
1.1502-13 (including any predecessor regulation) with respect to the Company
and its Subsidiaries and (ii) the amount of any excess loss account with
respect to the stock of each of the Subsidiaries for purposes of Treasury
Regulation section 1.1502-19 (including any predecessor regulation).
3.11.7 For purposes of this Agreement, the term "Taxes" shall
mean all taxes, charges, fees, levies or other similar assessments or
liabilities, including (i) income, gross receipts , ad valorem, premium, excise,
real property, personal property, sales, use, transfer, withholding, employment,
payroll and franchise taxes imposed by the United States or by any state, local
or foreign government or any subdivision, agency or similar organization
thereof, and (ii) any interest, fines, penalties, assessments and additions in
connection therewith. For purposes of this Agreement, the term "Tax Returns"
shall mean any report, return or statement required to be supplied to a Taxing
Authority in connection with Taxes. For purposes of this Agreement, the term
"Taxing Authority" means the Internal Revenue Service (the "IRS") or any
domestic or foreign Governmental Entity responsible for the administration of
Taxes.
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3.12 BROKERAGE FEES AND COMMISSIONS. Except for those fees and
expenses payable to SBC Warburg Dillon Read Inc. (the "Company Financial
Advisor") (a true and complete copy of whose engagement agreement has been
provided to Purchaser), no person or entity is entitled to receive from the
Company any investment banking, brokerage or finder's fee in connection with
this Agreement or the transactions contemplated hereby based upon arrangements
made by or on behalf of the Company.
3.13 PROXY STATEMENT. None of the information supplied or to be
supplied by the Company for inclusion or incorporation by reference in the Proxy
Statement (as defined herein) will, on the date it is first mailed to the
Company's stockholders or at the time of the Stockholders Meeting (as defined
herein), contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary, in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading, except that no representation is made by the Company with
respect to statements made or incorporated by reference therein based on
information supplied in writing by Purchaser or Sub specifically for inclusion
therein. The Proxy Statement, insofar as it relates to the Company or its
subsidiaries, will comply as to form in all material respects with the
provisions of the Exchange Act and the rules and regulations promulgated
thereunder.
3.14 EMPLOYEE BENEFIT PLANS; ERISA.
3.14.1 Schedule 3.14.1 sets forth a complete and accurate list
of (i) all "employee benefit plans," as defined in Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA") (collectively,
"Benefit Plans"), and (ii) all employment and consulting agreements and all
bonus, incentive compensation, deferred compensation, disability, severance,
stock bonus, stock option, stock purchase or vacation pay agreements, policies
or arrangements which the Company or any of its subsidiaries maintains or has
any liability in respect of and each of which has a cost to the Company or any
of its subsidiaries in excess of $25,000 for any year (collectively, the
"Employee Arrangements").
3.14.2 With respect to each Benefit Plan and Employee
Arrangement, a complete and correct copy of each of the following documents (if
applicable) has been delivered or made available to Purchaser or its
representatives (i) the most recent plan and related trust documents, (ii) the
most recent summary plan description, (iii) the most recent form 5500, (IV) the
most recent determination letter issued by the IRS and (v) the most recent
actuarial report.
3.14.3 Except as set forth on Schedule 3.14, the Company and
its subsidiaries have not during the preceding six years had any obligation or
liability with respect to a multi-employer plan within the meaning of Section
3(37) of ERISA.
3.14.4 Each of the Benefit Plans intended to be qualified under
Section 401 (a) of the Code is so qualified.
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3.14.5 All contributions or other payments required to have
been made or accrued by the Company or any of its subsidiaries under the terms
of any of Benefit Plan or Employee Arrangement have been made or accrued, except
for those contributions or payments the failure of which to make or accrue would
not have a Material Adverse Effect.
3.14.6 The Benefit Plans and Employee Arrangements have been
maintained and administered in all material respects in accordance with their
terms and applicable laws.
3.14.7 Except as disclosed in the Company Filings or in
Schedule 3.14, there are no pending or, to the knowledge of the Executive
Officers of the Company, threatened actions, claims or proceedings (other than,
routine claims for benefits) against or involving any Benefit Plan or Employee
Arrangement, except for any of the foregoing which would not have a Material
Adverse Effect.
3.14.8 Except as disclosed in the Company Filings or in
Schedule 3.14, the Company or any subsidiary does riot maintain or have an
obligation to contribute to retiree life or retiree health plans which provide
for continuing benefits or coverage for current or former officers, directors
and employees of the Company or any of its subsidiaries, except (i) as may be
required under Part 6 of Title I of ERISA or (ii) a medical expenses
reimbursement account plan pursuant to Section 125 of the Code.
3.14.9 Except as disclosed in Schedule 3.14 or in connection
with equity compensation or except as discussed in this Agreement, neither the
execution and delivery of this Agreement nor the consummation of the
transactions contemplated hereby will (i) result in any payment becoming due to
any employee of the Company or any of its subsidiaries, (ii) increase in any
benefits under any Benefit Plan or Employee Arrangement or (iii) result in the
acceleration of the time of payment of, vesting or other rights with respect to
any benefits under any Benefit Plan or Employee Arrangement.
3.14.10 The Company and its subsidiaries have no liability under
Section 4069 of ERISA by reason of a transfer of an under funded pension plan.
3.14.11 The Company's liability under any multi-employer plan,
if the Company withdrew in part or in whole on the date hereof, would not exceed
$150,000.
3.15 OPINION OF FINANCIAL ADVISOR. The Company has received the
opinion of the Company Financial Advisor to the effect that, as of the date
hereof, the Merger Consideration is fair to the holders of Shares from a
financial point of view, a copy of which has been provided to Purchaser.
3.16 VOTE REQUIRED. The affirmative vote of the holders of a
majority of the outstanding Shares is the only vote of the holders of any class
or series of the Company's capital stock necessary to approve this Agreement and
the transactions contemplated hereby.
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3.17 INTELLECTUAL PROPERTY. Except as set forth on Schedule 3.17,
the Company and its subsidiaries possess or have adequate rights to use all
material trademark, trade name, patent, service xxxx, brand xxxx, brand names,
industrial designs and copyrights necessary for the operation of their
businesses as currently being conducted, except where the failure to so possess
or have adequate rights would not result in a Material Adverse Effect
(collectively, the "Company Intellectual Property"). To the knowledge of the
Executive Officers of the Company, the use of Company Intellectual Property by
the Company or its subsidiaries does not conflict with, infringe upon, violate
or interfere with or constitute an appropriation of any right, title, interest
or goodwill, including any trademark, trade name, patent, service xxxx, brand
xxxx, brand name, computer program, database, industrial design or copyright of
any other person, except for any such conflict, infringement, violation,
interference, claim, invalidity, abandonment, cancellation or unenforceability
that would not have a Material Adverse Effect.
3.18 ENVIRONMENTAL MATTERS.
3.18.1 For purposes of this Agreement:
(i) "ENVIRONMENTAL LAW" means any applicable law
regulating or prohibiting releases of Hazardous Materials into
any part of the natural environment, or pertaining to the
protection of natural resources, the environment and public and
employee health and safety from Hazardous Materials including
the Comprehensive Environmental Response, Compensation, and
Liability Act ("CERCLA") (42 U.S.C. Section 9601 ET SEQ.), the
Hazardous Materials Transportation Act (49 U.S.C. Section 1801
ET SEQ.), the Resource Conservation and Recovery Act (42 U.S.C.
Section 6901 the Clean Water Act (33 U.S.C. Section 1251 ET
SEQ.), the Clean Air Act (33 U.S.C. Section 7401 ET SEQ.), the
Toxic Substances Control Act (15 U.S.C. Section 7401 ET SEQ.),
the Federal Insecticide Fungicide, and Rodenticide Act (7 U.S.C.
Section 136 ET SEQ.), and the Occupational Safety and Health Act
(29 U.S.C. Section 651 ET SEQ.) ("OSHA") and the regulations
promulgated pursuant thereto, and any such applicable state or
local statutes and the regulations promulgated pursuant thereto,
as such laws have been and may be amended or supplemented
through the Closing Date;
(ii) "HAZARDOUS MATERIAL" means any substance,
material or waste which is regulated by any public or
governmental authority in the jurisdictions in which the
applicable party or its subsidiaries conducts business, or the
United States, including any material or substance which is
defined as a "hazardous waste," "hazardous material," "hazardous
substance," "extremely hazardous waste" or "restricted hazardous
waste," "contaminant," "toxic waste" or "toxic substance" under
any provision of Environmental Law and shall also include
petroleum, petroleum products, asbestos, polychlorinated
biphenyls and radioactive materials;
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(iii) "RELEASE" means any release spill, effluent,
emission, leaking, pumping, injection, deposit, disposal,
discharge, dispersal, leaching, or migration into the
environment, or into or out of any property; and
(iv) "REMEDIAL ACTION" means all actions, including
any expenditures, required by a governmental entity or defined
under any Environmental Law, or voluntarily undertaken to (a)
clean up, remove, treat, or in any other way ameliorate or
address any Hazardous Materials or other substance in the
environment; (b) prevent the Release or threat of Release, or
minimize the further Release of any Hazardous Material so it
does not endanger or threaten to endanger the public health or
welfare or the environment; (c) perform pre-remedial studies and
investigations or post-remedial monitoring and care pertaining
or relating to a Release; or (d) bring the applicable party into
compliance with any Environmental Law.
3.18.2 Except as set forth on Schedule 3.18, the operations of
the Company and its subsidiaries are in compliance with all Environmental Laws,
except where the failure to so comply would not reasonably be expected to have a
Material Adverse Effect.
3.18.3 Except as set forth on Schedule 3.18, the Company and
its subsidiaries have obtained and maintained all permits required under
applicable Environmental Laws for the continued operations of their respective
business, except such permits the lack of which would not reasonably be expected
to have a Material Adverse Effect.
3.18.4 Except as set forth on Schedule 3.18, the Company and
its subsidiaries (i) are not subject to any material written consent decree,
compliance order or administrative order from any Governmental Entity or other
person respecting any Environmental Law, Remedial Action or any Release of a
Hazardous Material, (ii) have not received written notice under the citizen suit
provision of any Environmental Law or (iii) have not received any written
request for information, notice, demand letter, administrative inquiry or
complaint with respect to any Environmental Law, remedial Action or Release of a
Hazardous Material, except for with respect to (ii) and (iii) those written
notices, requests or other documents the subject matter of which would
reasonably be expected to have a Material Adverse Effect.
3.18.5 Except as set forth on Schedule 3.18, the Company and
its subsidiaries have not received any written communication alleging, with
respect to any such party, the violation of or liability under any Environmental
Law, which violation or liability is outstanding and would reasonably be
expected to have a Material Adverse Effect.
3.18.6 Except as set forth on Schedule 3.18, neither the
Company nor any of its subsidiaries has any contingent liability in connection
with the Release of any Hazardous Material which would reasonably be expected to
have a Material Adverse Effect.
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3.18.7 Except as set forth on Schedule 3.18, the operations of
the Company or its subsidiaries involving the transportation, treatment, storage
or disposal of hazardous waste, as defined and regulated under 40 C.F.R. Paris
260-270 (in effect as of the date of this Agreement) or any state equivalent are
in compliance with all Environmental Laws, except where the failure to so comply
would not reasonably be expected to have a Material Adverse Effect.
3.18.8 Except as set forth on Schedule 3.18, to the knowledge
of the Company, there is not now nor has there been in the past, on or in any
owned property of the Company or its subsidiaries any of the following: (i) any
underground storage tanks or surface impoundments, (i) any asbestos-containing
materials in friable form or (iii) any polychlorinated biphenyls, any of which
((i), (ii) or (iii) preceding) could reasonably be expected to have a Material
Adverse Effect.
3.18.9 Except as set forth on Schedule 3.18, no judicial or
administrative proceedings or governmental investigations are pending or, to the
knowledge of the Company, threatened against the Company or any of its
subsidiaries alleging the violation of or seeking to impose liability pursuant
to any Environmental Law.
3.19 TITLE TO REAL PROPERTY; LEASES. Schedule 3.19 sets forth a list
of (a) all real property currently owned by the Company and its subsidiaries and
(b) all leases with respect to real property to which the Company or any of its
subsidiaries is a party (collectively, the "Real Property Leases"). Except as
set forth on Schedule 3.19, each of the Company and its subsidiaries has good
and marketable title, or valid leasehold rights in the case of leased property,
to the real property owned or leased by it, including, without limitation, all
sand, gravel, rock and similar mineral rights (and rights of access thereto)
with respect to mineral producing properties, free and clear of any mortgages,
pledges, liens, encumbrances and security interests (collectively,
"Encumbrances"), except for (i) those Encumbrances reflected or reserved against
in the Company's Quarterly Report on Form I O-Q for the Quarter Ended September
30, 1997, (ii) Encumbrances for taxes, levies, imposts, assessments or
governmental charges of any kind which are not yet delinquent or which are being
contested in good faith by appropriate proceedings, (iii) liens for mechanics,
materialmen, laborers, employees, suppliers or other liens arising by operation
of law for which amounts which are not yet delinquent or which are being
contested in good faith by appropriate proceedings, (iv) as to leased property,
interests of lessors and Encumbrances affecting the interests of lessors, (v)
deposits made in the ordinary course of business to secure contractual or other
obligations of the Company or any of its subsidiaries, if the underlying
obligation is not yet delinquent, and (vi) liens or defects in title or
leasehold rights that, individually or in the aggregate, would not have a
Material Adverse Effect. Each of the Real Property Leases is valid and in full
force and effect, except to the extent it has previously expired in accordance
with its terms. Neither the Company nor any of its subsidiaries is in violation
of or in default under any Real Property Lease, other than such violations or
defaults which would not have a Material Adverse Effect. Notwithstanding
anything in Schedule 3.19 to the contrary, the Company represents and warrants
that there are no exceptions to the Company's title to its aggregate properties
(as such properties are identified as aggregate properties on Schedule 3.19)
either noted on Schedule B to any of the title policies attached to Schedule
3.19 with respect to such aggregate properties or otherwise, that would, in any
material way, interfere with
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the Company's title to its aggregate properties, its right to access such
aggregate properties, or the Company's right to extract and remove aggregates
from such properties in the ordinary course of the Company's business.
3.20 BOARD RECOMMENDATION. The Board of Directors of the Company, at
a meeting duly called and held, has by the vote of those directors participating
(a) determined that this Agreement and the transaction contemplated hereby are
fair to and in the best interests of the stockholders of the Company and
approved the same by at least a majority vote and (b) resolved to recommend that
the holders of the Shares approve this Agreement and the transactions
contemplated hereby.
3.21 INDEBTEDNESS. Except as set forth on Schedule 3.21 or as
otherwise disclosed in the financial statements and notes thereto set forth in
the Company Filings, the Company has no outstanding indebtedness for borrowed
money and is not a party to any agreement providing for the creation, incurrence
or assumption thereof.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF PURCHASER AND SUB
Purchaser and Sub represent and warrant to the Company as
follows:
4.1 ORGANIZATION. Each of Purchaser and Sub is a corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation and has the requisite corporate power to carry
on its business as it is now being conducted except where the failure to be so
organized, existing and in good standing or to have such power and authority
would not in the aggregate have a material adverse effect on the results of
operations, properties or financial condition of Purchaser and its subsidiaries
taken as a whole or on the ability of Purchaser or Sub to fully perform their
obligations hereunder. Each of Purchaser and Sub has heretofore made available
to the Company an accurate and complete copy of its respective certificate of
incorporation and Bylaws, as currently in effect.
4.2 AUTHORITY RELATIVE TO THIS AGREEMENT. Each of Purchaser and Sub
has all requisite corporate power and authority to execute and deliver this
Agreement and to consummate the transactions contemplated hereby. The execution
and delivery of this Agreement and the consummation of the transactions
contemplated hereby have been duly and validly authorized by the respective
Boards of Directors of Purchaser and Sub, and the stockholder of Sub, and no
other corporate proceedings on the part of Purchaser or Sub are necessary to
authorize this Agreement or to consummate the transactions contemplated hereby.
This Agreement has been duly and validly executed and delivered by each of
Purchaser and Sub and, assuming this Agreement constitutes a valid and binding
obligation of the Company, this Agreement constitutes a valid and binding
agreement of each of Purchaser and Sub, enforceable against each of Purchaser
and Sub in accordance with its terms, except that such enforcement may be
subject to bankruptcy, insolvency, reorganization, moratorium or other similar
laws now or hereafter in effect relating to creditors' rights and the remedy of
specific performance and injunctive and other forms of equitable relief may
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be subject to equitable defenses and to the discretion of the court before
which any proceeding therefor may be brought.
4.3 CONSENT AND APPROVALS, NO VIOLATION. Neither the execution and
delivery of this Agreement by Purchaser and Sub nor the consummation by
Purchaser and Sub of the transactions contemplated hereby will:
4.3.1 conflict with any provision of the respective
Certificates of Incorporation or Bylaws (or other similar governing documents)
of Purchaser or Sub;
4.3.2 require any consent, approval, authorization or permit
of, or filing with or notification to, any Governmental Entity, except (i) in
connection with the HSR Act, (ii) pursuant to the Exchange Act and the rules and
regulations thereunder, (iii) pursuant to state laws relating to takeovers and
state securities laws, if any are applicable, (iv) the filing of the Merger
Certificate pursuant to the applicable law or (v) where the failures to obtain
such consents' approvals, authorizations or permits, or to make such filings or
notifications, would not in the aggregate have any material adverse effect on
the results of operations, properties or financial condition of Purchaser and
its subsidiaries taken as a whole or on the ability of Purchaser or Sub to fully
perform their obligations hereunder;
4.3.3 result in a default (or give rise to any right of
termination, cancellation or acceleration) under any of the terms, conditions or
provisions of any note, lease, mortgage, license, agreement or other instrument
or obligations to which Purchaser or any of its subsidiaries is a party or by
which Purchaser or any of its subsidiaries or any of their respective assets may
be bound, except for such defaults (or rights of termination, cancellation or
acceleration) as to which requisite waivers or consents have been obtained or
which, in the aggregate, would not have any material adverse effect on the
financial condition, business or results of operations of Purchaser and its
subsidiaries taken as a whole or on the ability of Purchaser or Sub to fully
perform their obligations thereunder; or
4.3.4 violate any order, writ, injunction, decree, statute,
rule or regulation applicable to Purchaser or any of its subsidiaries, except
for violations which would not have in the aggregate any material adverse effect
on the financial condition, business or results of operations of Purchaser and
its subsidiaries taken as a whole or on the ability of Purchaser or Sub to fully
perform their obligations hereunder.
4.4 FINANCING. Purchaser has received binding written commitments
from financially responsible financial institutions to obtain, funds necessary
to consummate this Agreement and the transactions contemplated thereby, and to
pay related fees and expenses, and will make such funds available to Sub.
Purchaser has provided the Company with true and complete copies of all
commitments and agreements from third parties to provide such financing to
Purchaser or to Sub.
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4.5 BROKERAGE FEES AND COMMISSIONS. No person or entity is entitled
to receive from Purchaser or Sub any investment banking, brokerage or finder's
fee in connection with this Agreement or the transactions contemplated hereby
based upon arrangements made by or on behalf of Purchaser or Sub.
ARTICLE 5
COVENANTS
5.1 CONDUCT OF BUSINESS OF THE COMPANY. Except as contemplated by
this Agreement or as set forth on Schedule 5.1, during the period from the date
of this Agreement to the Effective Time, the Company and its subsidiaries shall
in all material respects conduct its operations according to its ordinary and
usual course of business and consistent with past practice and the Company shall
use commercially reasonable efforts to preserve impact in all material respects
the business organization of the Company, keep available the services of its
current officers and key employees, and preserve in all material respects the
good will of those having advantageous business relationships with it and its
subsidiaries. Without limiting the generality of the foregoing, and except as
contemplated by this Agreement, as set forth on Schedule 5.1 or as disclosed in
writing to Purchaser on or prior to the date hereof, prior to the Effective
Time, neither the Company nor any of its subsidiaries, as the case may be, will,
without the prior written consent of Purchaser:
5.1.1 issue, sell or pledge, or authorize or propose the
issuance, sale or pledge of. additional shares of its capital stock or
securities convertible into any such shares, or any rights, warrants or options
to acquire any such shares or other convertible securities, other than Shares,
preferred stock, treasury shares, rights, warrants or options, each as issuable
pursuant to the Options and Warrants;
5.1.2 split, combine, subdivide, reclassify or redeem, or
purchase or otherwise acquire, or propose to do any of the foregoing with
respect to, any of its outstanding securities;
5.1.3 declare or pay any dividend or distribution on the
Shares;
5.1.4 subject to the fiduciary duties of the Board of
Directors of the Company (after consultation with and advice from outside legal
counsel) and except pursuant to agreements or arrangements in effect on the date
hereof, purchase or otherwise acquire, sell or otherwise dispose of or encumber
(or enter into any agreement to so purchase or otherwise acquire, sell or
otherwise dispose of or encumber) material properties or material assets except
in the ordinary course of business;
5.1.5 subject to the rots of the stockholders of the Company
under applicable law, adopt any amendments to the Certificate of Incorporation
or Bylaws of the Company;
5.1.6 except as provided in Section 5.12, (i) increase the
compensation of any of its directors, officers or key employees, except pursuant
to the terms of agreements or plans currently
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in effect in amounts material to the Company and its subsidiaries taken as a
whole; (ii) pay or agree to pay any pension, retirement allowance or other
employee benefit not required or permitted by any existing plan, agreement or
arrangement to any director, officers or key employee in amounts material to
the Company and its subsidiaries taken as a whole; (iii) commit itself (other
than pursuant to any collective bargaining agreement) to any additional
pension, profit-sharing, bonus, extra compensation, incentive, deferred
compensation, stock purchaser, stock option, stock appreciation right, group
insurance, severance pay, retirement or other employee benefit plan,
agreement or arrangement, or to any employment or consulting agreement with
or for the benefit of any director, officer or key employee, whether past or
present in amounts material to the Company and its subsidiaries taken as a
whole; or (iv) except as required by applicable law, amend in any material
respect any such plan, agreement or arrangement; or
5.1.7 except in the ordinary course of business and consistent
with past practice, (i) incur any material amount of long-term indebtedness for
borrowed money or issue any material amount of debt securities or assume,
guarantee or endorse the obligations of any other person except for obligations
of wholly owned subsidiaries of the Company; (ii) make any material loans,
advances or capital contributions to, or investments in, any other person (other
than to wholly owned subsidiaries of the Company or customary loans or advances
to employees in amounts not material to the maker of such loan or advance);
(iii) pledge or otherwise encumber shares of capital stock of the Company or a
material portion of the capital stock of any
5.2 ACQUISITION PROPOSALS. The Company shall not, directly or
indirectly, solicit, carry on discussions with or enter into any agreement
with any corporation, partnership, person or other entity or group (other
than Purchaser or an affiliate or an associate of Purchaser) concerning any
merger. acquisition or similar transaction involving, or the sale of all or
substantially all of the assets or equity securities of. the Company or any
of its subsidiaries or divisions (other than with respect to the Company's
ready-mix operations, precast/prestressed concrete operations or Wyoming
operations) (an "Acquisition Proposal"). Notwithstanding the foregoing, the
Company may (i) directly or indirectly, furnish information to or enter into
discussions and negotiations with any person, entity or group that makes an
unsolicited Acquisition Proposal if the Board of Directors of the Company
determines in good faith (after consultation with and advice from outside
legal counsel) that such action is required for the Board of Directors to
comply with its fiduciary duties under applicable law, and (ii) to the extent
applicable, comply with Rule 14e-2 and l4d-9 promulgated under the Exchange
Act with regard to an Acquisition Proposal. The Company will promptly
communicate to Purchaser the terms of any proposal or inquiry which it may
receive in respect of any Acquisition Proposal by any person (other than
Purchaser or any affiliate of Purchaser or their respective directors,
officers, employees, representatives and agents).
5.3 ACCESS TO INFORMATION.
5.3.1 Subject to applicable law and the agreements set forth
in Section 5.3.2, between the date of this Agreement and the Effective time, the
Company will (i) give Purchaser and its authorized representatives reasonable
access, during regular business hours upon reasonable
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notice, to all of its facilities, books and records and key employees, (ii)
permit Purchaser to make such reasonable inspections as it may be required,
and (iii) cause its officers and those of its subsidiaries to furnish
Purchaser with such financial and operating data and other information with
respect to the business and assets of the Company and its subsidiaries as
Purchaser may from time to time reasonably request.
5.3.2 Information obtained by Purchaser pursuant to this
Section 5.3 shall be subject to the provisions of the confidentiality agreement
between Purchaser and the Company dated September 26, 1997 (the "Confidentiality
Agreement"), which agreement remains in full force and effect; except insofar as
such provisions would expressly prohibit Purchaser or Sub from taking any of the
actions contemplated by this Agreement.
5.4 BEST EFFORTS. Subject to the fiduciary duties of the Board of
Directors of the Company under applicable law as advised by legal counsel, each
of the parties hereto agrees to use its best efforts to take, or cause to be
taken, all necessary or appropriate action, and to do, or cause to be done, all
things necessary, proper or advisable under applicable laws and regulations or
otherwise to consummate and make effective the transactions contemplated by this
Agreement including, without limitation, the execution of any additional
instruments necessary to consummate the transactions contemplated hereby and
seeking to lift or reverse any legal restraint imposed on the consummation of
the transactions contemplated by this Agreement. In case at any time after the
Effective Time any further action is necessary or desirable to carry out the
purposes of this Agreement, the proper officers and directors of each party
hereto shall take all such necessary action.
5.5 STOCKHOLDERS' MEETING. The Company, acting through its Board
of Directors, shall in accordance with applicable law, its Certificate of
Incorporation and Bylaws duly call, give notice of, convene and hold an annual
or special meeting (the "Stockholders Meeting") of its stockholders as soon as
practicable to consider and vote upon approval of this Agreement and the
transactions contemplated hereby. Subject to its fiduciary duties under
applicable laws as advised by legal counsel, the Company will include in the
proxy statement (such proxy statement as amended or supplemented from time to
time being referred to herein as the "Proxy Statement") to be sent to the
Company's stockholders with respect to the Stockholders Meeting the
recommendation of its Board of Directors that its stockholders vote in favor of
the approval and adoption of this Agreement and the transactions contemplated
hereby. At the Stockholders Meeting. all of the Shares beneficially owned by
Purchaser or its affiliates, if any, shall be voted in favor of approval and
adoption of this Agreement and the transactions contemplated hereby.
5.6 PROXY STATEMENT. The Company will use its commercially
reasonable efforts (i) to obtain and furnish the information required to be
included by it in the Proxy Statement, (ii) to file the Proxy Statement with the
SEC, (iii) after consultation with the other parties hereto, respond as promptly
as is reasonably practicable to any comments made by the SEC with respect to the
Proxy Statement and any preliminary version thereof, and (iv) cause the Proxy
Statement to be mailed to its stockholders at the earliest practicable time
following the date of this Agreement. The information provided and to be
provided by the Company, Purchaser and Sub for use in the Proxy
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Statement shall, as of the date of mailing of the Proxy Statement and as of
the date of the Stockholders Meeting, not include any untrue statement of a
material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.
5.7 VOTING AGREEMENT. Concurrently with the execution of this
Agreement, Building and Construction Capital Partners 1, L.P. and Purchaser
shall enter into the Voting Agreement set forth as Exhibit A hereto.
5.8 FEES AND EXPENSES. Each party shall bear its own expenses in
connection with this Agreement and the transactions contemplated hereby;
provided, however, that if the Merger is consummated, the Surviving Corporation
shall assume responsibility for the payment of all Company expenses in
connection with this Agreement and the transactions contemplated hereby.
5.9 STANDSTILL. In the event of the termination of this Agreement,
neither Purchaser nor its subsidiaries, employees, officers or affiliates shall,
for a period of three years from the date of this Agreement, directly or
indirectly (unless and until Purchaser shall have received the prior written
invitation or approval of a majority of the Board of Directors of the Company):
5.9.1 solicit, seek or offer to effect, or effect;
5.9.2 negotiate with or provide any information to the Board
of Directors of the Company, any director or officer of the Company, any
stockholder of the Company, any employee or union or other labor organization
representing employees of the Company or any other person with respect to;
5.9.3 make airy statement or proposal, whether written or
oral, either alone or in concert with others, to the Board of Directors of the
Company, any director or officer of the Company or any stockholder of the
Company, any union or other labor organization representing employees of the
Company or any other person with respect to; or
5.9.4 make any public announcement (except as required by law)
or proposal or offer whatsoever (including, but not limited to, any
"solicitation" of "proxies" as such terms are defined or used in Regulation 14A
of the Exchange Act) with respect to:
(a) any form of business combination or transaction
involving the Company or any affiliate thereof, including, without limitation, a
merger, tender or exchange offer or liquidation of the Company's assets;
(b) any form of restructuring, recapitalization or
similar transaction with respect to the Company or any affiliate thereof;
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(c) any purchase of any securities or assets, or
rights or options to acquire any securities or assets (through purchase,
exchange, conversion or otherwise), of the Company or any affiliate thereof;
(d) any proposal to seek representation on the Board
of Directors of the Company or otherwise to seek to control or influence the
management, Board of Directors or policies of the Company or any affiliate
thereof;
(e) any request or proposal to waive, terminate or
amend the provisions of this Section 5.9; or
(f) any proposal or other statement inconsistent
with the terms of this Section 5.9. or instigate, encourage, joint, act in
concert with or assist (including, but not limited to, providing or assisting
in any way in the obtaining of financing for or acting as a joint bidder or
co-bidder for the Company with) any third party to do any of the foregoing.
5.10 PUBLIC ANNOUNCEMENTS. Purchaser and the Company shall consult
with each other before issuing any press release or otherwise making any public
statements with respect to the transactions contemplated by this Agreement and
shall not issue any such press release or make any such public statement prior
to such consultation, except as may be required by law.
5.11 INDEMNIFICATION AND INSURANCE.
5.11.1 The Company shall indemnify and hold harmless, and after
the Effective Time the Surviving Corporation shall indemnify and hold harmless,
each present and former employee, agent, director or officer of the Company and
its subsidiaries (the "Indemnified Parties") from and against any and all claims
arising out of or in connection with activities, including without limitation,
the transactions contemplated by this Agreement, in such capacity, or on behalf
of, or at the request of the Company, its subsidiaries or affiliates, to the
fullest extent permitted under Delaware law (subject to applicable limitations
thereunder) and in addition, to the fullest extent provided in their respective
charters or Bylaws (subject to applicable limitations thereunder) or any
contract or other arrangement in effect at the date hereof which obligations
shall survive the Merger and shall continue in full force and effect for a
period of not less than six years from the Effective Time; provided, however,
that if any claim or claims (a "Claim or Claims") are asserted or made within
such six year period, all rights to indemnification in respect of any such Claim
or Claims shall continue until disposition of any and all such Claims. Without
limiting the foregoing, the Company, and after the Effective Time the Surviving
Corporation, shall advance expenses incurred with respect to the foregoing, as
they are incurred, to the fullest extent permitted under applicable law,
provided that the person on whose behalf the expenses are advanced provides and
undertakes (which need not be secured) to repay such advances if it is
ultimately determined that such person is not entitled to indemnification.
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5.11.2 The Surviving Corporation shall use its best efforts to
cause to be maintained in effect for not less than six years from the Effective
Time the current policies of directors, and officers, liability insurance
maintained by the Company and its subsidiaries (provided that the Surviving
Corporation may substitute therefor policies of at least the same coverage
containing terms and conditions which are no less advantageous so long as no
lapse in coverage occurs as a result of such substitution) with respect to all
matters, including the transactions contemplated hereby, occurring prior to and
including the Effective Time; provided that, in the event that any Claim or
Claims are asserted or made within such six-year period, such insurance shall be
continued in respect of any such Claim or Claims until final disposition of any
and all such Claims. provided further that the Surviving Corporation shall not
be required to pay annual premiums in excess of 200% of the Company's total
current annual premiums for such insurance and if the Surviving Corporation is
unable to obtain the insurance required by this Section 5.11 it shall obtain as
much comparable insurance as can be obtained for an annual premium equal to such
maximum amount.
5.12 EMPLOYEE BENEFIT PLANS.
5.12.1 The Purchaser and the Surviving Corporation agree that
all employees of the Company and its subsidiaries which are offered employment
after the Effective Date shall be entitled to the same employee benefits, plans,
programs, arrangements and policies as are available to the employees of
Purchaser and its subsidiaries.
5.12.2 From and after the Effective Time, the Purchaser and the
Surviving Corporation shall assume and honor in accordance with their terms all
existing employment and severance agreements and arrangements set forth on
Schedule 5.12.
5.12.3 If any employee of the Company or any of its
subsidiaries becomes a participant in any employee benefit plan, program or
policy of the Purchaser or the Surviving Corporation, such employee shall be
given credit for purposes of eligibility and vesting under such plan for all
service prior to the Effective Time with the Company and its subsidiaries, or
any predecessor employer (to the extent such credit was given by the Company).
5.12.4 The Surviving Corporation shall provide professional out
placement services for all officers and salaried employees of the Company or any
subsidiaries employed at the Effective Time and who are terminated within one
year after the Effective Time.
5.12.5 The Purchaser shall reimburse (or cause the Surviving
Corporation to reimburse) any director, officer or employee (or former director,
officer or director) of the Company or any of its subsidiaries for all costs and
expenses, including attorneys' fees, incurred by such person in successfully
enforcing the provisions of this Section 5.
5.13 REAL ESTATE GAINS TAX AND NEW REAL PROPERTY TRANSFER TAX. The
Purchaser shall pay any State Tax on Gains Derived from Certain Real Property
Transfers and Real Property Transfer Tax and any similar tax in any other
jurisdiction (and any penalties or interest with respect
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to such taxes) payable in connection with the Merger or the acquisition of a
controlling interest in the Company by Purchaser or Sub, and the Purchaser
shall indemnify and hold harmless the stockholders of the Company from and
against any liability with respect to such taxes (including any penalties,
interest and professional fees). The Purchaser shall file any returns with
respect to such taxes.
5.14 EMPLOYEE STOCK OWNERSHIP PLAN. The Company agrees that, in
accordance with its rights under the Monroc, Inc. Employee Stock Ownership Plan
(the "ESOP"), the Company will direct the voting in favor of approval and
adoption of the Merger Agreement of any Shares held in the ESOP with respect to
which any ESOP participant has failed to give the ESOP trustee timely
instructions as to how to vote such Shares.
ARTICLE 6
CONDITIONS TO CLOSING
6.1 CONDITIONS TO EACH PARTY'S OBLIGATION TO EFFECT THE MERGER. The
respective obligations of each parry to effect the Merger are subject to the
satisfaction or waiver, at or prior to the Effective Time, of the following
conditions:
6.1.1 This Agreement shall have been approved and adopted by
the affirmative vote of the stockholders of the Company to the extent required
by applicable law and the Certificate of Incorporation of the Company.
6.1.2 No statute, rule, regulation, decree, order or
injunction shall have been promulgated, enacted, entered or enforced by any
United States federal or state government, governmental agency or authority or
court which remains in effect and prohibits, restrains, enjoins or restricts the
consummation of the Merger.
6.1.3 Any waiting period applicable to the consummation of the
Merger under the HSR Act shall have expired or been terminated.
6.2 CONDITIONS TO OBLIGATIONS OF PURCHASER AND SUB TO EFFECT THE
MERGER. Unless waived by Purchaser in writing, the obligations of Purchaser and
Sub to effect the Merger provided for hereby shall be subject to the
satisfaction, at or prior to the Effective Time, of each of the following
conditions:
6.2.1 The representations and warranties of the Company
contained in this Agreement shall be true and correct in all material respects
(except as to the extent such representations and warranties are qualified as to
materiality, in which case such representations and warranties shall be true and
correct in all respects) at and as of the Closing Date as if such
representations and warranties were made at and as of the Closing Date (other
than representations and warranties which address matters only as of a certain
date which shall be true and correct as of such certain date), except as and to
the extent that the facts and conditions upon which such
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representations and warranties are based are expressly required or permitted
to be changed by the terms thereof.
6.2.2 The Company shall have performed in all material
respects all agreements and covenants required hereby to be performed by it
prior to or at the Effective Time; provided, however, that neither Purchaser nor
Sub shall be entitled to refuse to consummate the transaction in reliance upon
its own breach or failure to perform.
6.2.3 From the date of this Agreement through the Effective
Time. there shall not have occurred any change in or effect on the business of
the Company or any of its subsidiaries, individually or in the aggregate, that
is materially adverse to the results of operations, properties, financial
condition or prospects of the Company and its subsidiaries taken as a whole,
except for such changes or effects resulting from, or in connection with general
economic, industry-wide or financial market conditions; provided, however. that
notwithstanding the occurrence of any change in or effect on the business of the
Company or any of its subsidiaries, individually or in the aggregate, that is
materially adverse to the results of operations, properties, financial condition
or prospects of the Company and its subsidiaries taken as a whole, Purchaser and
Sub shall still be obligated to effect the Merger if such change in or effect on
the business of the Company or any of its subsidiaries, individually or in the
aggregate, results from discussions or efforts of the Company, Purchaser or
Purchaser's affiliates to divest any of the ready-mix operations,
precast/prestressed concrete operations or Wyoming operations of the Company or
its subsidiaries.
6.2.4 Purchaser shall have received a certificate executed on
behalf of the Company by an executive officer of the Company to the effect set
forth in clauses 6.2.1 through 6.2.3.
6.3 CONDITIONS TO OBLIGATION OF THE COMPANY TO EFFECT THE MERGER.
Unless waived by the Company in writing, the obligations of the Company to
effect the Merger provided for hereby shall be subject to the satisfaction, at
or prior to the Effective Time, of each of the following conditions:
6.3.1 The representations and warranties of Purchaser and Sub
contained in this Agreement shall be true and correct in all material respects
(except as to the extent such representations and warranties are qualified as to
materiality, in which case such representations and warranties shall be true and
correct in all respects) at and as of the Closing Date as if such
representations and warranties were made at and as of the Closing Date (other
than representations and warranties which address matters only as of a remain
date which shall be true and correct as of such certain date), except as and to
the extent that the facts and conditions upon which such representations and
warranties are based are expressly required or permitted to be changed by the
terms thereof.
6.3.2 Purchaser and Sub shall have performed in all material
respects all agreements and covenants required hereby to be performed by them
prior to or at the Effective Time; provided,
-24-
however, that the Company shall not be entitled to refuse to consummate the
transaction in reliance upon its own breach or failure to perform.
6.3.3 The Company shall have received a certificate executed
on behalf of Purchaser and Sub by an executive officer of Purchaser to the
effect set forth in clauses 6.3.1 and 6.3.2.
ARTICLE 7
TERMINATION
7.1 TERMINATION. This Agreement may be terminated and the Merger
may be abandoned at any time notwithstanding approval thereof by the
stockholders of the Company (except as otherwise set forth in this Section 7.1),
but prior to the Effective Time:
7.1.1 by mutual written consent duly authorized by the Boards
of Directors of the Company, Purchaser and Sub;
7.1.2 by Purchaser or the Company if (i) the Effective Time
shall not have occurred on or before August 31, 1998 (provided that the right to
terminate this Agreement under this Section 7.1.2 shall not be available to any
party whose failure to fulfill any obligations under this Agreement has been the
cause of or resulted in the failure of the Effective Time to occur on or before
such date), (ii) the approval of the Company's stockholders required by Section
6.1.1 shall not have been obtained by August 31, 1998 at a meeting duly convened
therefor or at any adjournment thereof or (iii) any United States federal or
state government, governmental agency or authority or court shall have issued an
order, decree or ruling, or taken any other action, permanently restraining,
enjoining or otherwise prohibiting the Merger (which the party seeking to
terminate this Agreement shall have used its best efforts to have lifted or
reversed) and such order, decree, ruling or other action shall have become final
and non-appealable;
7.1.3 by the Company if an Acquisition Proposal has been made
and the Board of Directors of the Company determines, in the exercise of its
good faith judgment (after consultation with and advice from outside legal
counsel) do such termination is required for the Board of Directors to comply
with its fiduciary duties under applicable law; or
7.1.4 by Purchaser if the Board of Directors of the Company
withdraws or modifies in a manner adverse to Purchaser or Sub its determination
to recommend that the stockholders of the Company approve this Agreement and the
transactions contemplated hereby.
7.2 EFFECT OF TERMINATION.
7.2.1 In the event of the termination of this Agreement
pursuant to Section 7 hereof, this Agreement, except for the provisions of
Section 5.3.2 (confidentiality), Section 5. 11 (indemnity), Section 5.8 (fees
and expenses), Section 5.9 (standstill) and this Section 7.2, shall forthwith
become void and have no effect, without any liability on the part of any party
or its
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affiliates, directors, officers or stockholders. Nothing in this Section 7.2
or in Section 8.3 shall relieve any party to this Agreement of liability for
breach of this Agreement on or prior to the date of termination.
7.2.2 If (i) the Company terminates this Agreement pursuant to
Section 7.1.3, Purchaser terminates this Agreement pursuant to Section 7.1.4
following receipt by the Company of an Acquisition Proposal or either the
Company or Purchaser terminates this Agreement pursuant to clause (ii) of
Section 7.1.2 and immediately prior to any such meeting of the Company's
stockholders an Acquisition Proposal was pending, and (H) the Acquisition
Proposal which gave rise to such termination (or any revised transaction based
upon such Acquisition Proposal) is consummated within nine months of such
termination, then the Company (or any successor thereto) shall pay to Purchaser
a fee of $2.0 million (the "Termination Fee") in immediately available funds
within five business days following such termination. Only one Termination Fee
shall be payable pursuant to this Section 7.2.2. If the Company has paid any
amounts to Purchaser pursuant to Section 7.2.3, such amounts shall be deducted
from any Termination Fee owed to Purchaser so that in no event shall the
aggregate payments made by the Company to Purchaser pursuant to Sections 7.2.2
and 7.2.3 exceed $2.0 million.
7.2.3 If (i) the Company terminates this Agreement pursuant to
Section 7.1.3, Purchaser terminates this Agreement pursuant to Section 7.1.4
following receipt by the Company of an Acquisition Proposal or either the
Company or Purchaser terminates this Agreement pursuant to clause (ii) of
Section 7.1.2 and immediately prior to any such meeting of the Company's
stockholders an Acquisition Proposal was pending, then the Company (or any
successor thereto) shall pay to Purchaser the out-of-pocket fees and expenses
incurred or paid by or on behalf of Purchaser or Sub in connection with the
transactions contemplated by this Agreement, including all fees and expenses of
counsel, commercial banks, accountants, experts and consultants to Parent and
Sub. Payment of Purchaser's expenses pursuant to this Section 7.2.3 shall be
made no later than five business days after delivery to the Company of notice of
demand for payment and a written itemization setting forth in reasonable detail
all of Purchaser's expenses. Notwithstanding the foregoing, if the Company pays
to Purchaser the Termination Fee pursuant to Section 7.2.2, no amounts shall be
owed to Purchaser by the Company pursuant to this Section 7.2.3.
ARTICLE 8
MISCELLANEOUS
8.1 AMENDMENT. TO the extent permitted by applicable law, this
Agreement may be amended by action taken by or on behalf of the respective
Boards of Directors of the Company, Purchaser and Sub at any time before or
after adoption of this Agreement by the stockholders of the Company (if required
by applicable law) but, after any such stockholder approval, no amendment shall
be made which decreases the Merger Consideration or changes the form thereof or
which adversely affects the rights of the Company's stockholders hereunder
without the approval of such stockholders. This Agreement may not be amended
except by an instrument in writing signed on behalf of all the parties.
-26-
8.2 EXTENSION; WAIVER. At any time prior to the Effective Time, the
parties hereto, by action taken by or on behalf of the respective Boards of
Directors of the Company, Purchaser or Sub, may,
8.2.1 extend the time for the performance of any of the
obligations or other acts of the other parties hereto;
8.2.2 waive any inaccuracies in the representations and
warranties of any other party contained herein or in any document, certificate
or writing delivered pursuant hereto by any other party; or
8.2.3 waive compliance with any of the agreements or
conditions contained herein. Any agreement on the part of any party to any such
extension or waiver shall be valid only if set forth in an instrument in writing
signed on behalf of such party. The failure of any party to assert any of its
rights hereunder shall not constituent a waiver of such rights.
8.3 NONSURVIVAL OF REPRESENTATIONS AND WARRANTIES. The
representations and warranties made in Articles 3 and 4 shall not survive beyond
the Effective Time or the termination of this Agreement. This Section 8.3 shall
not limit any covenant or agreement of the parties hereto which by its terms
contemplates performance after the Effective Time.
8.4 ENTIRE AGREEMENT, ASSIGNMENT. This Agreement, together with the
Schedules hereto, (i) constitutes the entire agreement among the parties with
respect to the subject matter hereof and supersedes all other prior agreements
and understandings, both written and oral, other than. the Confidentiality
Agreement, among the parties or any of them with respect to the subject matter
hereof and (ii) shall not be assigned by operation of law or otherwise, provided
that Purchaser or Sub may assign any of their rights and obligations to any
wholly owned, direct or indirect subsidiary of Purchaser, but no such assignment
shall relieve Purchaser or Sub of its obligations hereunder.
8.5 ENFORCEMENT OF THE AGREEMENT. The parties hereto agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that the parties and other persons
entitled to enforce this Agreement pursuant to this Section 8.5 shall be
entitled to an injunction or injunctions to prevent breaches of this Agreement
and to enforce specifically the terms and provisions hereof in any federal or
state court located in Delaware (as to which the parties agree to submit to
jurisdiction for the purposes of such action), this being in addition to any
other remedy to which they are entitled at law or in equity.
8.6 VALIDITY. If any provision of this Agreement, or the
application thereof to any person or circumstance, is held invalid or
unenforceable, the remainder of this Agreement, and the application of such
provision to other persons or circumstances, shall not be affected thereby, and
to such end, the provisions of this Agreement are agreed to be severable.
-27-
8.7 NOTICES. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given (and shall be
deemed to have teen duly given upon receipt) by delivery in person, by cable,
telegram, telex or telecopies, or by registered or certified mail (postage
prepaid, return receipt requested) to the respective parties as follows:
If to Purchaser or Sub: U.S. Aggregates, Inc.
000 Xxxxx Xx Xxxxxx Xxxx
Xxxxx 000
Xxx Xxxxx, Xxxxxxxxxx 00000
Attn: Xxxxxxx X. Xxxxx
with a copy to: Xxxxxxxx & Xxxxx
000 Xxxx Xxxxxxxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Attn: Xxxx X. Xxxxxxxxxx, Esq.
If to the Company: Monroc, Inc.
0000 Xxxx Xxxxxx
X.X. Xxx 000
Xxxx Xxxx Xxxx, Xxxx 00000
Attn: Xxxxxx X. Xxxxx
with copies to: LeBoeuf, Lamb, Xxxxxx & XxxXxx, L.L.P.
000 Xxxxx Xxxx Xxxxxx
0000 Xxxxxx Xxxxxxxx
Xxxx Xxxx Xxxx, Xxxx 00000
Attn: Xxxxx X. Xxxxxx, Esq.
or to such other address as the person to whom notice is given may have
previously furnished to the others in writing in the manner set forth above
(provided that notice of any change of address shall be effective only upon
receipt thereof).
8.8 GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of Delaware regardless of the laws that
might otherwise govern under principles of conflicts of laws applicable thereto.
8.9 DESCRIPTIVE HEADINGS. The descriptive headings herein are
inserted for convenience of reference only and are not intended to be part of or
to affect the meaning or interpretation of this Agreement.
8.10 PARTIES IN INTEREST. This Agreement shall be binding upon and
inure solely to the benefit of each party hereto, and nothing in this Agreement,
express or implied, is intended to confer upon any other person any rights or
remedies of any nature whatsoever under or by reasons of this
-28-
Agreement except for the holders of Employee Options with respect to Section
2.2, the holders of Shares with respect to Articles I and 2 and Sections 5.9
and 8.4 (which are intended to be for the benefit of the persons provided for
therein, and may be enforced by such persons).
8.11 COUNTERPARTS. This Agreement may be executed in counterparts,
each of which shall be deemed to be an original, but all of which shall
constitute one and the same agreement.
8.12 CERTAIN DEFINITIONS. As used in this Agreement:
"AFFILIATE" or "Associate" of a person shall have the meaning
ascribed thereto in Rule I 2b-2 under the Exchange Act.
"BENEFICIAL OWNERSHIP" shall have the meaning as used in Rule
13d under the Exchange Act.
"EXECUTIVE OFFICERS" means Xxxxxx X. Xxxxx and L. Xxxxxxx Xxxxx.
"GROUP" shall have the meaning as used in Rule 13d-5(b) under
the Exchange Act.
"PERSON" means any individual, corporation, company, group,
partnership. association, governmental body or other entity.
"SUBSIDIARY" of an entity shall means any corporation, a
majority of the outstanding voting securities of which are owned directly or
indirectly by such entity.
"MATERIAL ADVERSE EFFECT" shall mean any change in or effect on
the business of the Company or any of its subsidiaries that is materially
adverse to the results of operations, properties or financial condition of the
Company and its subsidiaries taken as a whole, except for such changes or
effects resulting from, or in connection with general economic, industry-wide or
financial market conditions.
8.13 PERFORMANCE BY SUB. BY SUB. Purchaser hereby agrees to cause
Sub to comply with its obligations hereunder and to cause Sub to consummate the
Merger as contemplated herein.
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IN WITNESS WHEREOF, each of the parties has caused this Agreement to
be executed on its behalf by its officers thereunto duly authorized on the day
and year first above written.
PURCHASER
---------
U.S. AGGREGATES, INC.
/s/ Xxxxxxx X. Xxxxx
-------------------------------
Xxxxxxx X. Xxxxx
Executive Vice President
SUB
---
WESTERN ACQUISITION, INC.
/s/ Xxxxxxx X. Xxxxx
-------------------------------
Xxxxxxx X. Xxxxx
Vice President
COMPANY
-------
MONROC, INC.
/s/ Xxxxxx X. Xxxxx
-------------------------------
Xxxxxx X. Xxxxx
President and Chief Executive
Officer
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IN WITNESS WHEREOF, each of the parties has caused this Agreement to
be executed on its behalf by its officers thereunto duly authorized on the day
and year first above written.
PURCHASER
---------
U.S. AGGREGATES, INC.
-------------------------------
Xxxxxxx X. Xxxxx
Executive Vice President
SUB
---
WESTERN ACQUISITION, INC.
-------------------------------
Xxxxxxx X. Xxxxx
Vice President
COMPANY
-------
MONROC, INC.
-------------------------------
Xxxxxx X. Xxxxx
President and Chief Executive
Officer
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